POS and Agent Banking in Nigeria Explained (and How Agents Make Money)
11 October 2026 - Naira BriefingThe POS terminal on almost every Nigerian street corner is agent banking — a mini bank branch run by an individual. It fills the gap where ATMs and branches are scarce, letting people withdraw and deposit cash without a bank.
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How it works
An agent holds a float of cash and an account. Customers cash out (collect cash, debited from their account or card) or cash in (deposit cash), and pay a small fee. The rails are the same instant-transfer system behind bank transfers.
How agents make money
- A fee on each withdrawal and deposit — small per transaction, but it adds up on volume.
- Commissions on airtime, bills and transfers processed through the terminal.
- The main costs are the terminal, cash management and occasional failed/settlement issues.
Getting started
Providers like Moniepoint, Opay and PalmPay (see our wallet comparison) supply the terminal and account. You need ID, a registered business or BVN, and working capital for your cash float.
Running an agent business and moving money across borders too? Message us — we handle the international side at a market rate.
Business moving money across borders?
We get you a market rate on international transfers, settled to a Nigerian account.